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Operations Management > The Nature Of Planning And Control > Flashcards

The Nature Of Planning And Control Flashcards

1
Q

What is planning and control?

A
  1. Planning: the formalization of what is intended to happen at some time in the future
    - does not guarantee that it will happen, it is a statement of intention.
  2. Control is the process of coping with any changes that affect the plan. An intervention might be needed in the operation to bring it back on track
    - overall it involves the scheduling, co ordinating, and organizing operations activities
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2
Q

More specifically what does planning and control activities involve?

A

Planning is deciding:

  • what activities should take place in the operation
  • when they should take place
  • what resources should be allocated to them

Control is:

  • understanding what is actually happening in the organization
  • understanding whether there is a significant deviation from what should be happening
  • changing resources in order to affect the operations activities
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3
Q

What does long term planning involve?

A
  • uses aggregated demand forecasts
  • determines resources in aggregated form
  • objectives set in largely financial terms
    (Involves mainly planning)
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4
Q

What does medium term planning and control involve?

A
  • uses partially disaggregated demand forecast
  • determines resources and contingencies
  • objectives set in both financial and operations terms
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5
Q

What doe short term planning involve?

A
  • uses totally disaggregated forecasts or actual demand
  • makes interventions to resources to correct deviations from plans
  • particular consideration of operations objectives
    (Mainly control)
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6
Q

What other activities are part of planning and control?

A
  • scheduling (when to do things)
  • sequencing (in what order to do things)
  • monitoring and control (are activities going to plan)
  • loading (how much to do)
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7
Q

What is the difference between infinite and finite loading?

A

Finite loading: only allocates work to a work centre up to a set limit. (Estimated capacity) this is relevant when:

  1. It is possible to limit the load
  2. It is necessary to limit the load
  3. The cost of limiting the load is not prohibitive

Infinite loading: loading work which does not limit accepting work, but instead tries to cope with it. Capacity constraints have not been used to limit loading. So work is completed earlier. Relevant when:

  1. It is not possible to limit the load (A&E)
  2. It it not necessary to limit the load
  3. The cost of limit the load is prohibitive
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8
Q

What is operations scheduling?

A
  • ensures both customer requirements and performance targets are met
  • what schedules resources to meet customer requirements
  • detailed timetable showing what time or date jobs are to start and end.
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9
Q

What is the formula for calculating number of possible schedules ?

A

Number of possible schedules= number of jobs X number of machines

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10
Q

Distimguish between forward and backward scheduling?

A

Forward scheduling: starting work as soon as it arrives

Backward scheduling: starting work at the last possible moment in order to prevent them from being late

Decision between the two depend
S upon the circumstances

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11
Q

What are the advantages of forward scheduling?

A

Advantages:

  • high labour utilization, worker always start work to keep busy
  • flexible: the time slack in the system allows unexpected work to be loaded
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12
Q

What are the advantages of backward scheduling?

A
  • lower material costs: materials are not used until they have to be, delaying added value to the last moment
  • less exposed to risk in case of schedule change by the customer
  • tends for could the operation on customer due dates
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13
Q

What are gant charts?

A
  • method of scheduling
  • facilitate the development of alternative schedules by communicating them effectively
  • represents time as a bar, on a chart, and the start and finish time of activities.
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14
Q

Based on sequencing, there are a number of rules which determine what needs to be prioritized and sequenced first what are they?

A
  1. Physical constraint
  2. Customer priority
  3. Due date
  4. LIFO: for practical reasons, for heavy objects ex. But not for patients waiting at the hospital
  5. FIFO: first come first served,
  6. LOT (longest operation time) sequence longest jobs first keeps utilization high
  7. SOT (shortest operation time) tackle short jobs first if cash constrained can however damage service to larger customers
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15
Q

What can be used to judge the effectiveness of sequencing rules?

A
  1. Meeting the due date promised to customer (dependability)
  2. Minimizing the time the job is spent in the process, flow time (sped)
  3. Minimizing work in progress inventory (cost)
  4. Minimizing the time of work centre (cost)
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16
Q

What is he difference between push and pull control?

A

Push: intervention signals which push control through the process within the operation. Activities are scheduled by means of a central system and completed in line with and MRP system.

Pull: pull work only when it is required. The pace and specification of what is done is set by the customers workstation which pulls work from preceding workstation (supplier) request triggers the movement.

17
Q

What is the drum, buffer and rope concept that comes from the theory of constraint? (Eli goldratt)

A
  • an idea that helps to decide exactly where in a process, control should occur.
  • since most processes are unevenly balanced there is a likely occurrence of bottlenecks.
  • goldratt argues that the bottleneck is to act as the drum = setting the beat for the rest of the process to follow, the control point of the whole process.
  • because it doesn’t have capacity a bottleneck should be working all the time, and would therefore need a buffer of inventory in front of it to ensure it always has work.
  • some form of communication between the bottleneck and the Input is needed to prevent accumulation of work flow. This is called the rope
18
Q

What are the different types of control? (Objectives are ambiguous)

A
  1. Expert control: straight forward objectives, effects of intervention well understood, activity isn’t repetitive
    - control is delegated to an expert.
  2. Trial and error control: if objectives are straight forward but effects of interventions are unknown yet activity is repetitive, operation can be controlled through learning of own failures, by repeat
  3. Intuitive control: objectives are straightforward, unknown effects of intervention,and no repetition, control becomes an art rather than science.
  4. Negotiated control: objectives are unclear
19
Q

Volume and varieties effect on planning and control?

A

Low volume and high variety:

  • slow customer responsiveness
  • short planning horizon
  • timing is a major planning decision
  • detailed control decisions
  • high robustness

High volume and low variety:

  • fast customer response
  • long planning horizon
  • volume is a major planning decision
  • aggregated control decision
  • low robustness
20
Q

What is dependent demand? And independent demand?

A

Some operation can predict demand with relative certainty because demand for their services/products are dependent upon some other factor that is known,
- largely concerned with how the operation should respond when demand has occurred

Independent demand: does not have the forward visibility or cant see into the future of customer orders.

21
Q

What is the P:D ratio?

A

It indicates how long the customer has to wait for the service or product (D=demand time) as compared with the total time to carry out all the activities to make the service or product (P) available to the customer.

  • the larger the p:d ratio, the more uncertain it is since output is already assembled before demand of order is placed
22
Q

What is kanbans?

A
  • one method of operationalizing pull control means in Japanese “card or signal”
  • it is an instruction for the preceding process to send more
  • it is a visual control tool to show up areas of over production and lack of synchronization

Operations Management (10 decks)

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